Managing cash intelligently in a digital age

As banks look to reduce the cost and risk of cash, it’s important not to lose sight of the customer. For many South African SMMEs, especially those operating in cash rich sectors, physical cash is still king.

Simply making cash too expensive for businesses to use would not support Standard Bank’s purpose of driving business growth. Instead, Standard Bank recognises that a sustainable migration to digital banking involves using systems and technologies to make cash management more efficient, cheaper and safer for all South African businesses.

Realigning existing infrastructure

To continue to support business clients cash needs, Standard Bank’s first port of call was realigning its existing infrastructure to make cash more efficient. Nodal optimisation, for example, channels all cash services in multi-branch neighbourhoods to a single branch. Retailer deposits and withdrawals at most supermarkets provide another alternative to in-branch cash management.

Leveraging technology

When it comes to helping businesses safely manage larger amounts of cash, Standard Bank’s CashSecure service installs cash accepting devices at client premises. CashSecure includes regular and secure safe clearing by approved cash-in-transit professionals. The value of cash removed from safes is immediately posted to clients’ accounts, before the physical cash even reaches the cash center for processing. Should there be an incident on site, or the cash is stolen in transit, money deposited in the cash accepting device remains credited to the clients’ account despite the money being gone.

Digital agility

Standard Bank’s Cash Services solutions also include an online portal called Node2 for clients receiving cash at single or multiple premises. Node2 provides business clients with visibility, instant authentication and recording of all cash deposits, with amounts showing immediately in their accounts. Once again, the moment the cash is deposited in a safe and authenticated, the risk transfers to the bank.

Service innovation

For smaller traders needing to make smaller deposits of notes and coins, Standard Bank will soon be introducing Teller Cash Recyclers (TCRs). Whereas ATMs only take notes, TCRs will take coins as well. When fully developed, TCRs will also pay out in coins and, as with a parking meter, provide change where necessary. TCRs will provide cash clients the ability to pay, for example, a R98.80 monthly funeral plan with a R100 note, receiving the exact change, in coins, from the machine.

Hybrid cash infrastructure

Standard Bank is also about to pilot Community Devices. These are cash accepting devices placed in a business precinct, like the Oriental Plaza, allowing several businesses to make deposits into the same safe 24/7. Each separate business client will have their own access code with all cash deposited immediately accruing to their own account. Again, the moment any cash is deposited in a Community Device, all risk will transfer to the bank. This cash solution will be ideal for multiple smaller businesses operating in specific precincts, removing the need and risk of travelling, with cash, to branches or queueing at ATMs to deposit cash.

Community Devices will also allow third party deposits. In other words, if a client wants to pay a business a large amount in cash, the business can provide the client a code. The client can then place the cash directly into the Community Device upon which the value is immediately credited to the right business account.

Smart cash for tomorrow’s business

Rather than just abandoning cash and clients that use cash, Standard Bank has evolved a judicious blend of cash solutions, augmented by new digital capabilities to serve the full range of client transactional needs.

Combined with the strategic realignment of existing infrastructure and the targeted deployment of new solutions, Standard Bank remains committed to extending the ability of South African businesses to manage cash securely and affordably in a digital age.